Baldwin & the Fed’s Liquor Tax

Lucky Baldwin’s vast financial resources enabled him to purchase the beautiful Santa Anita Rancho. Now, he could develop property using his own ideas, and unique creativity.

He found that his many activities would not permit him to personally take charge of carrying out his plans for improving the property. He found the manager, a distant relative, Dick Kelly, and paid him $60 a month with a promise of an attractive future.

Specific instructions were given as to the planting of trees, digging wells, building reservoirs and irrigation ditches, constructing stables with a training track for the racehorses he planned to bring to the ranch.

All went well for a long period of time, however, and differences arose between Baldwin and Kelly. Some say Baldwin did not give Kelly the opportunities for advancement that he promised. In any event their relationship soured and Baldwin fired him.

Kelly soon secured an appointment as a Federal Revenue Agent. He worked out a plan to seize Baldwin’s goods at his distiller, wine vaults and warehouse for violation of the Revenue Act. Baldwin was arrested and charged with refilling stamped packages of brandy. This caused Baldwin a great deal of unfavorable publicity, and decidedly considerable cost to fight the charge, which he eventually did. He came close to being jailed for the offense. Baldwin said, later in life, “this one did frighten me.”

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Carol Libby and Karen Hou

Carol Libby & Karen Hou

Arcadia Historical Society